Average Cost of Employee Benefits in Canada
Generally, employees will match the rate their employers pay for the benefits each month, meaning the cost of these benefits premiums is shared between a company and their employees. Employees will have the amount deducted from their paycheque weekly, biweekly, or monthly, depending on the pay frequency of the company. These costs can differ depending on the province where the business is established and in which the employee works.
Employers can cap coverage of benefits at a certain limit for a set time; generally, every calendar year, to save money on premiums. Employers can also decide on the level of coverage, most likely offering between 80% and 100% of the cost.
In Alberta, work benefits must include CPP contributions as well as employment insurance paid by both employees and employers. For example, the average rate of benefits packages for Alberta public service employees will see the employer paying 5.25% of the employee’s yearly salary, while the employee pays 5.45% of their annual salary as part of their CPP contributions. At the same time, employees will contribute 1.58% of their annual income for employment insurance, and the employer contributes 1.16 times the employee contribution.
On top of these mandatory benefits, public service employees also receive health and dental benefits. This Alberta employee benefit plan is split into premiums for a family benefit plan and a single benefit plan. In terms of the single-core medical, prescription drug, and dental plan, employees contribute a premium rate of $22.60 biweekly, while the employer contributes $45.03. This premium rate jumps to $40.57 for employees paying for the family plan, while employers contribute $94.37 biweekly.
Overall, for the supplementary benefits plan, an employee on the single plan will end up paying $542.40 a year while the employer spends $1080.72. For the family plan, the employee pays $973.68 per year, while the employer contributes $2264.88. Therefore, employers will typically end up paying a few grand per employee each year for health benefits alone. This does not include the mandatory contributions or any other benefits like life insurance and long-term disability coverage.